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After partial formalisation of the economy through sudden demonetisation of high value currency notes and the implementation of Goods and Services Tax, there are efforts to formalise the 83-year old Reserve Bank of India too.

Under the current structure, RBI's nominees can reportedly take decision on their own, without keeping key stakeholders in the loop. So, the government is expected to ask the RBI to at least seek comments, if not approval, on issues that can impact the overall economy.

Given concerns that NBFCs have frozen lending amid fears of a liquidity crunch, the government is determined to break the logjam that's causing a credit squeeze for micro, small and medium enterprises (MSMEs), which employ millions

Patel is unlikely to yield under pressure and will rather mount a strong defence of the central bank's policies regarding stringent NPA recognition norms as well as measures taken to ease credit supply to MSMEs.

The Modi government has proposed that the RBI board draft regulations that will enable it to set up committees to monitor tasks such as financial stability, monetary policy transmission and foreign exchange management.